Making Some back Trading Silver
16th January – Silver Long
I’ve found that it is always difficult psychology wise to trade as well as you should if you start with a losing trade. Our Gold trade earlier in the week had left us with a 120 point deficit.
Trading Silver is a bit like trading gold as they move in tandem with each other, it’s not often that you’ll see them diverge. Anyway, I went long Silver on Wednesday after see a positive pin bar.. it showed bullishness and I went long at 3145. Now, it wasn’t all that smooth a ride as you can see from the hourly chart below:
Silver Hourly Chart – Sharp falls before recovering
When I enter a trade, I expect price movement soonish but nothing happened for a day. When we did get movement, it wasn’t the way I had hoped for.. a swift movement downwards of almost 50 pips.. in fact, it was within a sliver of our stop but it recovered so quickly that I actually missed this when it all happened. Then nothing really happened the following day and on Friday we had a sharp move upwards again breaking above the previous highs. However, soon after this, the price got slammed down by 40 points, back below the previous high. At this stage, with the though of Monday’s loss (I don’t want to end up with two losses in a week), I watched. I ended up closing out with a 50 point profit.
It can be tough to trade the markets solely looking at one particularly timeframe. If one looks at the Daily chart on Silver, it actually looks ok to keep hold of the Silver long. However, markets just don’t behave as you may think so you have to be cautious… it may well shoot up from here but there’s anxiety holding onto trades particularly over the weekend.. the market can gap the wrong way taking out your stop before resuming in the long term direction.
So in total for this, a loss of 120 on Gold but clawed back 50 on Silver gives us a deficit of -70. We’ll have to work hard to get it back next week!
Have a great weekend all!
